Telenor and Telia Denmark are to merge their Danish mobile networks. The partners will establish a common infrastructure company tobuild the joint network, combining 2G, 3G and LTE technologies.
The two operators have granted each other access to existing base
stations in areas where they would each otherwise have had to build
their own. In the future, Telenor and Telia Denmark will
jointly construct new cellular towers, which will reduce capital
expenditure on mobile infrastructure. The partnership covers the radio access network, including antennas, towers and transmission equipment.
Telenor and Telia have entered into an agreement on network sharing
to create Denmark's best mobile network. The agreement will have a
significant impact on both the customer experience and the companies'
finances. Telia and Telenor will be holding a joint press conference
today at 11 am at Hotel Phoenix, Bredgade 37, Copenhagen.
This is a historic day in the Danish telecom industry. The two largest
telecom providers in Scandinavia, Telia and Telenor, have entered into
an agreement to share their mobile networks in Denmark. Telia and
Telenor will also be establishing a common infrastructure company to
build the joint network. The agreement involves the 2G, 3G and 4G (LTE)
networks, and ambitions for the agreement are high:
"The decision to merge our network investments and network
competencies is a real milestone. Together, we will create Denmark's
best mobile network and thereby provide the best customer experience
within smartphones, tablets and mobile broadband," say Søren
Abildgaard, CEO, Telia, and Jon Erik Haug, CEO, Telenor.
High ambitions in Denmark
With this agreement, the two companies give each other access to
existing towers in areas where they would each otherwise have had to
build their own. In addition, future new cellular towers will be built
jointly by Telenor and Telia. This will reduce both companies' spending
on mobile infrastructure while at the same time allowing them to
expand the joint network more quickly than they would have been able to
do on their own.
"Both Telia and Telenor have high ambitions in Denmark. However, to
achieve these ambitions, we need to do two things successfully: We need
to provide a world-class customer experience. And we need to secure the
scale of our network to ensure that it is also profitable to do
business in Denmark in the long term. By sharing networks, we are
taking a giant and strategically important step on both fronts, making
us even better prepared to face the competition," say Jon Erik Haug and
Customers will begin to feel the effects of the network partnership
right away. As part of the agreement, Telenor and Telia are already in
the process of giving each other access to existing 2G and 3G positions
within the framework of the cellular tower legislation - as well as
planning new joint 2G and 3G positions.
"We are making our network even more finely meshed and thus improving
the speech and data coverage of both companies, which will directly
benefit customers. We will be improving the customer experience month by
month, and we are already well underway," conclude Søren Abildgaard
and Jon Erik Haug.
Partners in infrastructure, competitors in products
The partnership only covers the radio access network, i.e. the
antennas, towers and transmission equipment that establish connections
to mobile units. The partnership does not involve the two companies'
core networks where their services are produced - the core networks
will continue to be operated separately. Telia and Telenor will
continue as two independent providers and will in future also compete
aggressively for customers through different products, services and
prices. Telenor and Telia will report the establishment of the new
joint network company to the Danish Competition and Consumer Authority.